Exam PMI-SP topic 1 question 89 discussion

Actual exam question from PMI's PMI-SP

Question #: 89
Topic #: 1

Fred is the project manager of the NHA project. This project has a BAC of $2,456,900 and is sixty percent complete. Fred has crashed the project, which has driven the project costs to date to $1,525,140, but his project is five percent more complete than what was planned. What is the schedule variance for this project that Fred needs to report to the management?

A. $176,675
B. $122,845
C. -$85,000
D. -$51,000

Show Suggested Answer

Suggested Answer: B 🗳️
There is positive variance of $122,845 on Fred's project. Variances can be either positive or negative. Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule.
A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.
Incorrect Answers:
A: This is not a valid answer for the project.
C: This is the project's variance at completion.
D: This is the cost variance for the project.

by Mopar at Aug. 27, 2019, 3:36 p.m.

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aleemulislam

3 years, 7 months ago

EV=0.6*2456900=1474140, PV=0.55*2456900, SV=EV-PV = 1474140-1351295=122845(+ve)

upvoted 2 times

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CDKA

3 years, 10 months ago

EV = 2456900*0.65 = 1596985 PV = 2456900 * 0.6 = 1474140 Therefore, SV = EV - PV = 122845 (+ve ahead of schedule)

upvoted 3 times

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Mopar

4 years, 8 months ago

Shouldn't the answer be: $1,525,140 - ($2,456,900 * .55(since it is 5% more complete than PLANNED) = $173,845?

upvoted 1 times

segunkay

9 months ago

When dealing SV, your actual cost doest not play any role. just dealing with EV and PV. AC inot in the equation.